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January 4, 2011 View this newsletter as a web page on CFR's website. EXECUTIVE SUMMARY - U.S. Dismisses Iran Nuclear Overture - Israel Says Settlement Talks Halted by U.S. - Washington Downplays Pakistan Turmoil - GOP Plans Congressional Investigations Top of the Agenda: U.S. Dismisses Iran Nuclear Overture Tehran invited (BBC) foreign diplomats from China, Russia, and several European Union countries to tour some of their nuclear facilities, including installations at Natanz and Bushehr. However, the United States was excluded from the group of invitees. The U.S. State Department, which has been leading the charge for economic sanctions against the regime, dismissed the gesture (WSJ) as a "ploy" designed to divide the international community. U.S. and European diplomats have expressed fear that Iran may try to use diplomacy to forestall more economic sanctions while it continues to push forward with uranium enrichment. A spokesman for Tehran reiterated the strictly "peaceful" nature of the nuclear program (Reuters) and claimed the latest invitation was a signal of "goodwill" and a willingness to cooperate with the international community. In addition, Iran expressed its desire to host the official visit prior to the next round of talks in Istanbul this month, but European officials said the invitation was not likely to be honored (NYT), if at all, until after the negotiations are completed. Analysis: This Foreign Affairs article discusses the dangers of a nuclear Iran and the limits of containment policy. Abbas Milani of ForeignPolicy.com details the rich history behind Iran's current nuclear ambitions and why the United States' denuclearization drive isn't working. Background: View an interactive timeline that explores the history of U.S.-Iran relations. MIDDLE EAST: Israel Says Settlement Talks Halted by U.S. Israeli Prime Minister Benjamin Netanyahu said negotiations over a new settlement freeze stalled when U.S. officials stopped pushing for the ban, not because Israel rejected it. Peace talks with the Palestinians broke down following the resumption of settlement construction (al-Jazeera). In this article for Foreign Affairs, Howard M. Sachar suggests the Israelis and Palestinians will never find peace if they are left to negotiate on their own. He argues Washington must lead the way in enforcing a final-status settlement. PACIFIC RIM: U.S. Calls for Talks with North Korea On the first leg of his trip to South Korea, China, and Japan, the U.S. envoy to North Korea (Yonhap) advocated for another round of "serious negotiations" in the near term. The visit comes ahead of a scheduled summit between U.S. President Barack Obama and Chinese Premier Hu Jintao. China: Chinese state television announced the nation's new ability to reprocess fuel from nuclear power plants. The technology will greatly expand the amount of power that can be produced from China's twelve nuclear plants (AP). Australia: Flood waters forced the closing of three-quarters of Queensland coal-fields (BBC) and threaten to squeeze prices on the global steel industry. The Australian state exports half the coking coal required to make the metal. SOUTH AND CENTRAL ASIA: Washington Downplays Pakistan Turmoil The U.S. State Department deemphasized the impact of Pakistan's recent political tumult. Spokesman Philip Crowley expressed confidence in the country's ability to resolve the situation, and stressed the U.S. focus on a long-term strategic partnership (Dawn). This CFR Analysis Brief discusses the Pakistani government's loss of its parliamentary majority and how it's raised new concerns about efforts to combat Taliban and al-Qaeda militants. AFRICA: Obama to Boost Outreach to Africa in 2011 According to aides, President Obama will increase his administration's engagement with Africa in 2011 (AP), and plans on visiting the nations that demonstrate good governance and positive democratic models. Ivory Coast: A new delegation of African leaders failed to persuade incumbent President Laurent Gbagbo to cede victory following disputed polls. In response, rival candidate and internationally recognized winner Alassane Ouattara declared negotiations "finished" (BBC). AMERICAS: GOP Plans Congressional Investigations Led by Representative Darrell Issa (R-CA), Republican lawmakers laid out plans for at least six formal inquires (WashPost) into issues ranging from recalls at the U.S. Food and Drug Administration to corruption in Afghanistan to the WikiLeaks affair. In this Council Special Report, Kay King offers recommendations to reset congressional rules, practices, and procedures to address today's dysfunctional Congress and restore it as a full partner to the executive branch in advancing U.S. national security interests. Brazil: President Dilma Rousseff's new administration announced plans to pressure China over its currency policy (WSJ) in an upcoming visit to Beijing. The United States and other nations have urged China to allow the yuan to strengthen in order to address growing trade imbalances. EUROPE: Lukashenko Releases One of Five Rivals Belarusian President Alexander Lukashenko released one of his five opponents who have been imprisoned since their participation in mass protests two weeks ago. Lukashenko faces widespread international condemnation following his highly contested victory (DeutscheWelle). Greece: Public officials announced plans for an eight-mile stretch of fence along Greece's northeastern border with Turkey (GlobalPost). The goal of the construction would be to prevent illegal immigration primarily from Asia and Africa.

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